UPDATE 1-Canada Lithium gets license for Quebec mine

June 04, 2012|Reuters

TORONTO, June 4 (Reuters) - Shares of Canada Lithium Corp rose 16 percent on Monday, after the company said ithad received the mining license for its Quebec Lithium projectin the eastern Canadian province.

Canada Lithium expects to start up the mine and processingplant at the end of this year, with initial production expectedin the first quarter of 2013.

The Quebec Lithium mine is currently under construction nearVal D'or, some 525 kilometers (325 miles) northwest of Montreal.

The hard rock project, which will produce some 20,000 tonnesof battery-grade lithium carbonate a year, is on track to cost$207 million to build, the company said.

Lithium demand has grown in recent years on a surginglithium ion battery market. Lithium ion batteries powertechnologies from smartphones to electric vehicles.

Canada Lithium's stock was up 16 percent at 43.5 Canadiancents on Monday on the Toronto Stock Exchange. Shares are down12 percent so far this year.